The Investment Column: Misys
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.MISYS, Britain's biggest software group, has finally confirmed what market observers had long expected. It faces a slowdown of demand from its banking customers. The shares, already down 15 per cent from 12-month highs, fell another 10 per cent yesterday to 560.5p as analysts cut forecasts.
Part of the company's misfortune is that spending on Y2K and conversion to the euro created one-off gains last year. Now the first half of the current year is likely to suffer as banks shy away from upgrading millennium- ready systems.
Then there's Misys' plan to spend pounds 50m on building an Internet business. The strategy is to develop a twin portal. One strand will service independent financial advisers.
That should build incremental revenue streams offering decent future growth. The other strand will enable consumers to make more informed choices about, for example, ISAs.
Misys already has Internet experience through a joint venture which provides Internet services to doctors. Though the twin portal strategy unveiled yesterday will produce losses for several years, Misys will easily absorb those amounts.
The question is how the market will take a brief slowdown in banking software spending. If it becomes overly negative about this, and the shares begin to approach 500p, longer-term investors should consider seizing the opportunity.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments